Decomposing the Value of Cigarettes Using Experimental Auctions
Document Type
Article
Publication Date
1-1-2007
Department
Political Science, International Development, and International Affairs
Abstract
Using a new brand of cigarettes with less nicotine content than conventional cigarettes, we conducted experimental auctions at two grocery stores to estimate smokers' value of nicotine. Our approach is novel because the brand of cigarettes auctioned was new to the market and the cigarette's nicotine content is reduced using genetic modification, with no effect on the taste of the cigarettes. We found smokers would be willing to pay US$1.25-$1.45 for a pack of cigarettes with no nicotine and $1.59-$1.66 for a pack of cigarettes with low levels of nicotine.
Publication Title
Nicotine & Tobacco Research
Volume
9
Issue
1
First Page
93
Last Page
99
Recommended Citation
Monchuk, D.,
Rousu, M.,
Shogren, J.,
Nonnemaker, J.,
Kosa, K. M.
(2007). Decomposing the Value of Cigarettes Using Experimental Auctions. Nicotine & Tobacco Research, 9(1), 93-99.
Available at: https://aquila.usm.edu/fac_pubs/2131